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Taxing topics

17th September 1992
Page 31
Page 31, 17th September 1992 — Taxing topics
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Which of the following most accurately describes the problem?

• DF Marriner (CM 3-9 Sept) advances two reasons why we cannot change from a road tax disc system to one of gathering duty through fuel price. With respect, he has not hit upon the real reason why this change will not happen, as neither of the fears he voices is insurmountable.

In place of the tax disc every vehicle could carry an insurance certificate disc issued on renewal of premium and clearly showing the expiry date of cover.

As to an MOT certificate, this does no more than indicate that, on a stipulated date, the vehicle concerned has satisfied the examiner. No Sir, the fundamental reason why such a change will not happen is financial. Unlike PAYE, VAT, or fuel duty itself, the taxation of a vehicle on the road is paid annually in advance. At any potential changeover date there would on average be some five or six months advance taxation held by the Government.

Can you see any Government refunding nearly half a year's income from this source and only getting the replacement tax spread over the extended period? I can't!

L Carr Maidstone, Kent Commercial Motor welcomes readers' letters, which can be phoned in on 081-652 3689 (24-hour service). Letters, which should be typed double spaced, may be edited for length and do not necessarily represent the views of the editor.

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